The minimum eligibility period for receipt of pension is 10years. A Central Government servant retiring in accordance with thePension Rules is entitled to receive superannuation pension oncompletion of at least 10 years of qualifying service.
In the case of Family Pension the widow is eligible toreceive pension on death of her spouse after completion of one yearof continuous service or before even completion of one year if theGovernment servant had been examined by the appropriate MedicalAuthority and declared fit for Government service.
Up to 30.11.2008, the qualifying service for getting fullpension was 33 years. So, the pension amount received was – where Rrepresents average reckonable emoluments for last 10 months ofqualifying service or the last pay drawn as opted by the Govtservant. Family Pension: If the Govt. servant dies within service,family pension is received at 50% of last emoluments for 10 yearsand thereafter 30% w.e.f. 01.12.2008
Pension amount = R/2(X) 61/66 From 01.11.2008, the qualifyingservice for getting full pension has been changed to 25 years. So,the pension amount received would be – Pension amount = R/2(X)49/50.
Additional Pension: w.e.f. 01.12.2008
| Age (in years) | Pension amount |
|---|---|
| 80-85 | 20% of basic pension |
| 85-90 | 30% of basic pension |
| 90-95 | 40% of basic pension |
| 95-100 | 50% of basic pension |
| 100 and above | 100% |
Commuted value of Pension– 1/3rd of the basicpension was commuted up to 30.11.2008 From 01.12.2008 – 40% of thebasic pension Government servants retiring on or after 31.12.2008,restoration of CVP is 15 years.
A Central Government/State Government servant has an optionto commute a portion of pension, not exceeding 40% of it, into alump sum payment with effect from 01.01.1996. No medical examinationis required if the option is exercised within one year ofretirement. If the option is exercised after expiry of one year,he/she will have to under go medical examination by the specifiedcompetent authority.
Lump sum payable is calculated with reference to theCommutation Table constructed on an actuarial basis. The monthlypension will stand reduced by the portion commuted and the commutedportion will be restored on the expiry of 15 years from the date ofreceipt of the commuted value of pension. Dearness Relief, however,will continue to be calculated on the basis of the original pension(i.e. without reduction of commuted portion).
The formula for arriving for commuted value of Pension (CVP) is CVP = 40 % (X) Commutation factor* (X)12.
This is payable to the retiring Government servant. A minimumof 5 years qualifying service and eligibility to receive servicegratuity/pension is essential to get this one time lump sumbenefit. Retirement gratuity is calculated @ 1/4th of a month’sBasic Pay plus Dearness Allowance drawn before retirement for eachcompleted six monthly period of qualifying service. There is nominimum limit for the amount of gratuity. The retirement gratuitypayable is 16 1/2 times the Basic Pay, subject to a maximum of Rs. 7.5lakhs with effective from 1/1/2006.
Death GratuityThis is a one-time lump sum benefit payable to thewidow/widower or the nominee of a permanent or a quasi-permanent ora temporary Government servant, including CPF beneficiaries, dyingin harness. There is no stipulation in regard to any minimum lengthof service rendered by the deceased employee. Entitlement of deathgratuity is regulated as under:
| Qualifying Service | Rate |
|---|---|
| Less than one year | 6 times of basic pay |
| One year or more but less than 5 years | 2 times of basic pay |
| 5 years or more but less than 20 years | 12 times of basic pay |
| 20 years of more | Half of emoluments for every completed 6 monthly periodof qualifying service subject to a maximum of 33 times of emoluments. |
Maximum amount of Death Gratuity admissible is Rs. 7.5 lakhs w.e.f. 1.1.2006
Service Gratuity
A retiring Government servant will be entitled to receiveservice gratuity (and not pension) if total qualifying service isless than 10 years. Admissible amount is half month’s basic paylast drawn for each completed 6 monthly period of qualifyingservice. There is no minimum or maximum monetary limit on thequantum. This one time lump sum payment is distinct from and ispaid over and above the retirement gratuity.
Issue of No Demand Certificate
Dues owed by the retiring employees on account of Licence Feefor Government accommodation, advances, over payment of pay andallowances are required to be assessed by the Head of Office andintimated to the Accounts Officer two months in advance of the dateof retirement so that these are recovered from retirement gratuitybefore payment. For this purpose the Licence Fee for those inoccupation of Government accommodation is taken into account up tothe end of the permissible period for which accommodation can beretained after retirement under the Rules on normal rent. Therecovery of Licence Fee beyond that period is the responsibility ofthe Directorate of Estates. If, for any reason final dues cannot beassessed on time, then 10% of gratuity is withheld from gratuity.
Encashment of leave is a benefit granted under the CCS(Leave) Rules and not a pensionary benefit. Encashment of EarnedLeave/Half Pay Leave standing at the credit of the retiringGovernment servant is admissible on the date of retirement subjectto a maximum of 300 days. There is no provision under the Rule forpayment of interest on delayed payment of Leave Encashment.